Employee involvement

1. EMPLOYEE INVOLVEMENT Submitted to: Dr. Shefali Nandan Submitted by: Ujjwal Mishra Satish Arya Nidhi Kumari Tarun Talreja

2. T able of content Definition Aspect of employee involvement Encouraging employee involvement Levels of Employee Involvement How involvement improves decisions Outcomes of Employee Involvement Overcoming Involvement Challenges Forms of employee involvement References

3. Employee involvement A participative process that uses the input of employees to increase their commitment to the organization’s success. The direct participation of staff to help an organization fulfil its mission and meet its objectives by applying their own ideas, expertise, and efforts towards solving problems and making decisions. Regular participation of employee in deciding how work is done, making suggestion for improvement, goal setting, planning and monitoring of their performance.

4. Aspects Of Employee Involvement Employee motivation Employee empowerment Teams and team work Performance appraisal

5. Encourage Employee Involvement Employees need to be given the authority to participate in substantive decisions Employees need to have training or experience with appropriate decision-making skills Incentives to participate must be present Communicate the results with all of your staff Contd ……

6. Encourage Employee Involvement Give a brief survey to your staff that is made up of open-ended questions that ask for specific improvement ideas Review every response Create a team to implement the easiest ideas that can have the greatest positive impact

7. High Medium Low Levels of Employee Involvement High involvement — Employees have complete decision making power Full consultation — Employees offer recommendations Selective consultation — Employees give information, but don’t know the problem

8. How Involvement Improves Decisions Employee Involvement Identify and define problems better More likely to select the best option Usually identify more and better solutions

9. Outcomes of Employee Involvement Improved organizational decision-making capability Improved attitude regarding work Substantially improved employee well-being Reduced costs through elimination of waste and reduced product cycle times Empowerment, job satisfaction, creativity, commitment and motivation, as well as intent to stay Increased employee productivity across industries

10. Overcoming Involvement Challenges Cultural Differences Better in collectivist and low power distance cultures Management Resistance Educate/train managers to become facilitators Employee and Union Resistance Concerns about increased stress, giving up union rights, and union power Solution is trust and involvement

11. Example of employee involvement Wegmans grocery stores involve their employees in making decisions that affect their work and please their customers. Wegmans encourages employees to make on the spot decisions without consulting their immediate supervisors.

12. Major forms of employee involvement Participative Management Representative participation Quality circles

13. Participative Management A process in which subordinates share a significant degree of decision-making power with their immediate superior. Participation typically has only a modest influence on variables such as employee productivity, motivation, and job satisfaction. The use of participation is not a sure means for improving employee performance.

14. Representative participation Workers are represented in small groups of employees who participate. Power is redistributed putting labor on equal foot with the interest of management and stockholder. Two major forms : Work councils. Board representatives. Overall influence on working of employee is minimum, although it increases the motivation and satisfaction of the employees doing the representation.

15. Work Councils Are the groups of nominated of elected employees who must be consulted when management makes decisions involving personnel. To reduce workplace conflict by improving and systematising communication channels. To correct market failures by means of public policy. On 22 September 1994, the Council of the European Union passed a Directive on the establishment of a European Works Council (EWC) or similar procedure for the purposes of informing and consulting employees in companies which operate at European Union level. The EWC Directive applies to companies with at least 1,000 employees within the EU and at least 150 employees in each of at least two Member States .

16. Board Representatives These are the employees who sit on the company’s board of directors and represent the interest of firm’s employee. Typical duties of boards of directors include: G overning the organization by establishing broad policies and objectives; S electing, appointing, supporting and reviewing the performance of the chief executive; E nsuring the availability of adequate financial resources; A pproving annual budgets; Accounting to the stakeholders for the organization's performance; S etting the salaries and compensation of company management.

17. Quality Circle Voluntary groups of employees who work on similar tasks or share an area of responsibility They agree to meet on a regular basis to discuss & solve problems related to work. They operate on the principle that employee participation in decision-making and problem-solving improves the quality of work

18. How Do Quality Circles Work? Characteristics Volunteers Set Rules and Priorities Decisions made by Consensus Use of organized approaches to Problem-Solving

19. How Do Quality Circles Work? All members of a Circle need to receive training Members need to be empowered Members need to have the support of Senior Management

20. How Can They be Used in an Organization? Increase Productivity Improve Quality Boost Employee Morale

21. Problems with Quality Circles Inadequate Training Unsure of Purpose Not truly Voluntary Lack of Management Interest Without empowerment and support of the management staff, circles will not have the resources provided to them to be successful.

22. References http://humanresources.about.com/od/glossarye/a/employee_inv.htm http://smallbusiness.chron.com/advantages-disadvantages-employee-inv.pdf University consulting alliance by Robert Bullock, Scontrino -Powell http://www.authorstream.com/Presentation/karthikasenthil-219969-employee-involvement-tqm-education-ppt-powerpoint/ http://management-class.com/courseware/int_mgmnt/mcshane/ppt_ch09.pdf J L Cotton, Employee Involvement: Methods for improving Performance and work attitude (Newbury Park, CA: Sage publication,1993), pp. 129-30, 139-40.